WW Grainger Receives a Buy from Oppenheimer

By Jason Carr

In a report released today, Christopher Glynn from Oppenheimer assigned a Buy rating to WW Grainger (NYSE: GWW), with a price target of $245. The company’s shares closed on Friday at $203.48.

Glynn commented:

“GWW’s Analyst Day featured 2018 guidance and affirmation of bridge to 2019 OM target of 12-13%, vs. ’18 OM guidance for 10.4-11.0%, flat at midpoint vs. 2017E. The 2018 outlook for flat OM includes wraparound of US -6% price implementation: was about 2/3 recognized in 1H17, full impact by 8/1/17. The 2018 EPS guidance of $10.60-11.80 compared to our $11.35 estimate and $11.04 consensus. The bridge includes better US margin outlook than our prior model: 14.3-14.9% guide compared to our prior 14.2% (now 14.4%) and vs. ~15% ’17G. US OM projects down 2 ppts vs. ’16, compared to mid-year guide for down 2-3 ppts, with volume and cost productivity resulting in moderate total impact from the price transformation.”

According to TipRanks.com, Glynn is a top 100 analyst with an average return of 12.4% and a 69.3% success rate. Glynn covers the Industrial Goods sector, focusing on stocks such as Emerson Electric Company, Honeywell International, and Rockwell Automation Inc.

WW Grainger has an analyst consensus of Hold, with a price target consensus of $194.50.

Based on WW Grainger’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $2.64 billion and quarterly net profit of $161 million. In comparison, last year the company earned revenue of $2.6 billion and had a net profit of $184 million.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock.

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W.W. Grainger, Inc. operates as a distributor of maintenance, repair and operating products. The company offers maintenance, repair and operating supplies and other related products and services through local branches, catalogs and the Internet.